New gas furnace + new AC
- Installed
- $13,000$10,200–$15,900
- Energy per year
- $1,760Baseline
- 15-year total
- $39,400
- Payback
- Baseline
Heat pump or new furnace and AC? For Eversource (NSTAR Electric) customers
For Eversource (NSTAR Electric) customers in Massachusetts, on the utility's current tariff, local weather and current rebates.
Quick answer · updated
As of November 2026, for a typical 1,800 sq ft gas-heated home on Eversource (NSTAR Electric) electricity rates in Massachusetts that needs a new furnace and AC: A high-efficiency cold-climate heat pump comes out ahead here even with a high quote: about $11,900 less than a new furnace and AC over 15 years at typical prices, and $530 a year less to run.
Electricity
26.0¢/kWh
-14% vs. Massachusetts average
Heating fuel
$2.46/therm
Gas: 57% of homes here
Climate
5,811
heating degree days · Jamaica Plain
Rebates
up to $7,950
Mass Save air-source heat pump rebate
Our estimate for this home
A high-efficiency cold-climate heat pump comes out ahead
A high-efficiency cold-climate heat pump comes out ahead here even with a high quote: about $11,900 less than a new furnace and AC over 15 years at typical prices, and $530 a year less to run.
Total cost over 15 years
Installed cost plus energy, year by year. Hover or tap the chart to compare.
- New gas furnace + new AC
- Heat pump (replaces both)
- High-efficiency cold-climate heat pump
Show as a table
| Option | Installed cost (typical, range, after rebates) | Energy cost per year | 15-year total | Payback vs. like-for-like |
|---|---|---|---|---|
| New gas furnace + new AC | $13,000 $10,200–$15,900 |
$1,760 |
$39,400 | Baseline |
| Heat pump (replaces both) | $13,000 $9,100–$17,000 |
$1,580 saves $180/yr |
$36,700 | Same price up front, cheaper to run |
| High-efficiency cold-climate heat pump Lowest 15-year cost | $9,000 $4,500–$14,700 after $7,950 rebate |
$1,230 saves $530/yr |
$27,400 | Cheaper up front and to run |
What this is based on
- Electricity: Greater Boston Residential R-1 (A1) tariff for Eversource (NSTAR Electric), effective 2026-02-01, from the U.S. Utility Rate Database, applied tier by tier to the extra kWh.
- Weather: Jamaica Plain (5,811 heating and 827 cooling degree days a year, 1991-2020).
- Heating fuel prices (EIA): gas $2.46/therm (Massachusetts, average of the last five winter months); propane $3.64/gallon (Massachusetts average this heating season); heating oil $6.19/gallon (Massachusetts average this heating season).
- Homes in Eversource (NSTAR Electric)'s Massachusetts area heat with gas 57%, heating oil 19%, electricity 18%, propane 4% (U.S. Census Bureau, American Community Survey 2019-2023). The calculator starts with gas, the most common furnace fuel here; pick yours above.
- Massachusetts HVAC installer wages are 27% above the U.S. median (BLS), so installed prices are scaled by 1.13.
- Energy use for heating and cooling:
- New gas furnace + new AC: 1,555 kWh and 555 therms a year for heating and cooling
- Heat pump (replaces both): 6,261 kWh a year for heating and cooling
- High-efficiency cold-climate heat pump: 4,862 kWh a year for heating and cooling
Rebates
- Mass Save air-source heat pump rebate (homes heated with gas)
(checked 2026-11-08, valid to 2026-12-31)
ENERGY STAR Cold Climate equipment, Mass Save installer network. Gas-heated homes qualify through a Mass Save gas sponsor (Berkshire Gas, Eversource, Liberty, National Grid, Unitil); municipal gas customers do not. Whole-home requires the home to be sufficiently weatherized. - Mass Save air-source heat pump rebate (homes heated with oil, propane, electric resistance)
(checked 2026-11-08, valid to 2026-12-31)
ENERGY STAR Cold Climate equipment, Mass Save installer network. Homes replacing oil, propane or electric resistance heat qualify through their Mass Save electric sponsor (Eversource, National Grid, Unitil or Cape Light Compact). - Municipal light plant customers may have their own town rebates on top. The federal 25C tax credit ended with 2025 installs. Mass Save also offers a 0% HEAT Loan.
How Eversource (NSTAR Electric)'s rates change the answer
Eversource (NSTAR Electric)'s electricity price for a typical home is 14% below the Massachusetts average ($0.260 vs. $0.303 per kWh). A heat pump moves your heating from gas, propane or oil to electricity, so the electricity price is the biggest single factor: calculators that use a state average can get the answer wrong for your utility. At these prices, a heat pump is cheaper to run than gas heat for a typical home here.
Common questions
Is a heat pump worth it for Eversource (NSTAR Electric) customers?
A high-efficiency cold-climate heat pump comes out ahead here even with a high quote: about $11,900 less than a new furnace and AC over 15 years at typical prices, and $530 a year less to run. This is for a typical 1,800 sq ft home with average insulation that heats with gas and needs both a new furnace and AC; change the details in the calculator above for your home.
How much does a heat pump cost to run on Eversource (NSTAR Electric)'s rates?
About $1,230 a year for heating and cooling with a high-efficiency cold-climate heat pump (4,862 kWh), compared with about $1,760 a year for a new furnace and AC, for a typical 1,800 sq ft home with weather like Jamaica Plain's.
How much does a heat pump cost to install in Massachusetts?
Our typical installed price for a high-efficiency cold-climate heat pump in Massachusetts is about $9,045 (range $4,513 to $14,710) after about $7,950 in rebates, against about $13,030 for a new furnace and AC. Prices are published study ranges scaled for home size and Massachusetts installer wages; rebates are the programs listed on this page. Always compare real quotes.
What electricity price does this use?
Electricity: Greater Boston Residential R-1 (A1) tariff for Eversource (NSTAR Electric), effective 2026-02-01, from the U.S. Utility Rate Database, applied tier by tier to the extra kWh.
How we calculate this
Heating and cooling need
Your home's yearly heating and cooling need comes from 1991-2020 NOAA climate normals for the nearest weather station, scaled by floor area and insulation level. If you know last winter's gas use, compare it with the therms in the energy-use list above.
Heating fuels
Choose the fuel your furnace burns: gas, propane, heating oil or electricity. Gas uses the state's average residential price over the last five winter months; propane and heating oil use the U.S. Energy Information Administration's weekly residential prices for this heating season (state, regional or U.S. average, as available), converted by heat content (91,500 Btu per gallon of propane, 138,500 per gallon of oil). An electric furnace is priced through the same electricity rates as the heat pump. The starting fuel is the most common furnace fuel in the utility's area (U.S. Census Bureau, American Community Survey).
Equipment efficiency
New gas or propane furnace 95% AFUE, new oil furnace 85%, electric furnace 100%; new AC SEER2 13.4; standard heat pump SEER2 15.2 / HSPF2 7.8; high-efficiency cold-climate heat pump SEER2 21.5 / HSPF2 10.6. Heat pump efficiency falls as it gets colder, and in cold months part of the heat comes from backup electric strips (or your old furnace, if you keep it). Existing equipment is assumed to be 15-20 years old: an 80% gas or propane furnace, a 78% oil furnace or a SEER2 9.5 AC.
Installed costs
Installed prices vary a lot, so we show a typical price and a range for a home of about 1,800 sq ft with existing ductwork, scaled for larger or smaller homes: furnace and AC together $9,000–$14,000; furnace alone $3,800–$7,000; AC alone $4,500–$9,000; standard heat pump $8,000–$15,000; high-efficiency cold-climate heat pump $11,000–$20,000; electrical panel upgrade, if needed, $1,500–$4,000. These are national figures drawn from published studies and program data (NESCAUM / Energy Solutions, Heat Pumps in the Northeast and Mid-Atlantic: Costs and Market Trends (October 2024); Rewiring America, Upfront cost of home electrification (March 2024); EIA, Updated Buildings Sector Appliance and Equipment Costs and Efficiencies (2023)). The most useful number here is how much more a heat pump can cost than a like-for-like quote and still come out ahead: get quotes for both and compare.
Labor and rebates
Half of each installed price is treated as labor and scaled by the state's median HVAC installer wage relative to the U.S. median (U.S. Bureau of Labor Statistics). Listed rebates are subtracted when the box is ticked; per-ton rebates assume about one ton of capacity per 600 sq ft. Rebates change often and have eligibility rules, so confirm with the program before you buy.
Not included
Financing, maintenance (similar for all options), local town rebates, and changes in energy prices over time.